SaaS contracts: what to watch for before you renew
A founder’s checklist for tricky clauses and pricing gotchas to review before a SaaS contract renews.
Why this matters
Most contract surprises come from small clauses. A five-minute check per vendor prevents expensive lock-ins.
What to check
1) Auto-renewal & notice
Look for auto-renew plus the notice window (often 30–60 days). Calendar it now.
2) Seat and role terms
Are you billed for all invited users or only active seats? Are viewer/guest roles cheaper?
3) Pricing caps and change rights
Does the vendor reserve the right to change price mid-term? Push for caps or fixed pricing on renewal.
4) Usage limits
API calls, storage, projects, or MAUs — confirm how “overages” are billed.
5) Downgrade and termination
Is there a downgrade path at renewal? Can you terminate for convenience with notice?
6) Data export & portability
Check you can export in a usable format and how long data is retained after termination.
7) Security & DPA
If you handle customer data, make sure there’s a DPA and the right sub-processor commitments.
Negotiation prompts
- “If we commit annually, can we hold current pricing and right-size to active seats?”
- “Please add a downgrade path and 30-day termination for convenience at renewal.”
- “Confirm data export format and retention period post-termination.”
Final pass
Write a one-line decision for each contract: keep, right-size, negotiate, or cancel, with the next action date.
